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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 14980 / July 12, 1996
SEC v. Richard Jenkins, Case No. 96-1347-CIV-T-23C (M.D. Fla.)
On July 10, 1996, the Commission filed a Complaint against
Richard Jenkins ("Jenkins") of San Diego, California, alleging
violations of the registration, antifraud, broker-dealer
registration and penny stock disclosure provisions of the federal
securities laws in connection with the offer, purchase and sale
of stock of two subsidiaries of Marada Global Corporation
("Marada Global"), a now-defunct private Florida corporation.
The Complaint alleged that through the use of glossy color
brochures, prospectuses, flyers, scripts and other solicitation
documents, Jenkins, directly or indirectly, misrepresented and/or
omitted to disclose to investors and prospective investors: (a)
that Marada Global had exclusive agreements with Caribbean island
nations to operate and develop an airline, casinos and hotels
when it had no such agreements; (b) that Marada stock was being
sold by Marada "vice presidents" who were, in reality, merely
telemarketers earning 40% commissions; (c) that Marada would
apply for listing and be traded on NASDAQ when, in fact, it was
practically impossible for Marada to obtain such a listing; (d)
the cumulative disciplinary history of key Marada personnel,
including Jenkins; and (e) that the only substantial "asset" of
Marada Global was not owned free-and-clear. According to the
Complaint, from at least August 1993 through September 1994, over
200 investors nationwide were defrauded of nearly $2 million.
Previously, on September 23, 1994, the Commission filed its
complaint against Marada Global, Marada Capital and Roc G.
Hatfield, also alleging violations of the registration,
antifraud, broker-dealer registration and penny stock disclosure
provisions of the federal securities laws. On September 23 and
October 18, 1994, respectively, the Court entered a temporary
restraining order and preliminary injunction against the
Defendants. On November 16, 1994, the Court appointed a receiver
over the Defendant corporations. On September 8, 1995, the Court
entered a final judgment of permanent injunction and other
relief, by consent, against Hatfield. On January 22, 1996, the
Court entered a final judgment of permanent injunction, by
consent, against Marada Global and Marada Capital.
The Commission's Complaint against Jenkins seeks to enjoin
him from future violations of Sections 5(a), 5(c) and 17(a) of
the Securities Act of 1933, Sections 10(b), 15(a)(1) and 15(g) of
the Exchange Act, and Rules 10b-5, 15g-2, 15g-4, 15g-5 and 15g-9,
thereunder, as well as ancillary relief including disgorgement
and civil money penalties. Prior to filing the Complaint,
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Jenkins consented to a final judgment of permanent injunction.